Florida Clerks of Court and
Comptrollers
Form 1
Statement of Financial Interests
Who, Where, When, Why and How
Winter Conference
Jacksonville, Florida
January 30, 2014
2012 CE Financial Disclosures

37,532 Florida public officials and
employees were required to file financial
disclosure forms in 2012.
o1413 Constitutional officers filed Form 6
o979 Judges filed Form 6
o170 Senior Judges filed Form 6
o13,483 State offices and employees filed Form
1
o21,487 Local officers and employees filed
Form 1
Who needs to file Form 1
Persons holding any of these positions in local
government:
◦ chief administrative employee or finance director of a
county, municipality, or other political subdivision
◦ county or municipal attorney
◦ purchasing agent (regardless of title) having the
authority to make any purchase exceeding $20,000
for the local governmental unit (NOTE the 2013
change)
 A person who assumes one of these positions must file
within 30 days of taking that position

1
2013, SB 2, Finance Director
 The law has added “finance director of a county, municipality, or
other political subdivision” to the types of persons who must file
Form 1.
 The Commission on Ethics generally takes a functional approach.
For types of positions that do not have uniform job titles, the
Commission has looked at job responsibilities.
 SB 2 does not define "financial director." We can be guided by the
language of section 218.403(2), F.S., which includes in its definition
of “chief financial officer” a person, “regardless of the title of his or
her office, charged with administering the fiscal affairs of a unit of
local government.” (The term “fiscal affairs” is not defined in
Florida Statutes.)
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Finance Director
 An employee who meets the following two tests should, in my
view, file a Form 1 in 2014:
o deals with substantial financial matters such as the receipt,
investment, or disbursement of significant sums of money,
AND
o operates relatively independently on those financial matters
under a broad delegation of duties on essential matters acting
without direct approval on a day-to-day basis.
 Note: “Finance directors" were added to the law effective 5/1/13,
the date SB 2 became law. The financial disclosures that were
required to be filed by July 1, 2013, were for the 2012 calendar
year (unless the filer chose a different tax year).
o So the Form 1 filings required in 2013 DID NOT include "finance
directors" who will not be included until the July 1, 2014, filings
for the 2013 calendar year.
o The exception would be a newly-hired "finance director"
employed on or after May 1, 2013, (the effective date of the
new law) who WILL be required to file a Form 1 within 30 days
of employment.
3
Purchasing Agents & Procurement
Employees


“Purchasing agents” with authority to
commit expenditure of public funds in
excess of $20,000 are (and have been, see s.
112.3145, F.S.) required to file Form 1
disclosure annually.
Do not confuse this with the new SB 2
limitations on gifts (s. 112.3148, F.S.) received
by “procurement employees” who
participate, even in an advisory capacity, in
procurements expected to exceed $10,000
in a fiscal year.
4
Purchasing Agent (F.S. excerpts)
112.312 Definitions.
(20) “Purchasing agent” means a public officer or employee having the authority to
commit the expenditure of public funds through a contract for, or the purchase of, any goods,
services, or interest in real property for an agency, as opposed to the authority to request or
requisition a contract or purchase by another person.
112.3145 Disclosure of financial interests and clients represented before
agencies.—
(1)(a) “Local officer” means:
3. Any person holding one or more of the following positions: mayor; county or city
manager; chief administrative employee of a county, municipality, or other political subdivision;
county or municipal attorney; finance director of a county, municipality, or other political
subdivision; chief county or municipal building code inspector; county or municipal water
resources coordinator; county or municipal pollution control director; county or municipal
environmental control director; county or municipal administrator, with power to grant or
deny a land development permit; chief of police; fire chief; municipal clerk; district school
superintendent; community college president; district medical examiner; or purchasing
agent having the authority to make any purchase exceeding the threshold amount
provided for in s. 287.017 for CATEGORY ONE, on behalf of any political subdivision of
the state or any entity thereof.
287.017 Purchasing categories, threshold amounts.—The following purchasing
categories are hereby created:
(1) CATEGORY ONE: $20,000.
5
Procurement Employee (2013 SB 2)
112.3148 Reporting and prohibited receipt of gifts by
individuals filing full or limited public disclosure of financial
interests and by procurement employees.—
(2) As used in this section:
(e) “Procurement employee” means any employee of an officer,
department, board, commission, or council, or agency of the executive
branch or judicial branch of state government who has participated
in the preceding 12 months participates through decision,
approval, disapproval, recommendation, preparation of any part of a
purchase request, influencing the content of any specification or
procurement standard, rendering of advice, investigation, or auditing
or in any other advisory capacity in the procurement of contractual
services or commodities as defined in s. 287.012, if the cost of such
services or commodities exceeds or is expected to exceed
$10,000 $1,000 in any fiscal year.
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What you’ll report
If you are required to file a Form 1, you will
report your:
 Primary sources of income
 Secondary sources of income
 Real property
 Intangible personal property
 Liabilities
 Interests in specified businesses
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Disclosure period



The tax year for most filers is the calendar
year.You can just check the box.
However, if you file your IRS tax return
based on a tax year that is not the calendar
year, you should specify the dates of your tax
year in this portion of the form and check
the appropriate box.
This is the time frame or "disclosure period"
that you will use in completing your Form 1.
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Filing
If you have nothing to report, you must
write "none" or "n/a" in that section.
 Send in only the first 2 pages of the form
(not the instructions).
 Local officers and employees file with the
Supervisor of Elections of the county in
which they permanently reside.
 File originals, facsimiles are not
acceptable.

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Filing
Initially, each local officer and employee (who is
required to file) must file within 30 days of the
date of his or her appointment or of the
beginning of employment.
 Annually, local officers and employees are
required to file by July 1st following each calendar
year in which they hold their positions.
 Each local officer and employee is required to file
a final disclosure form (Form 1F) within 60 days
of leaving office or employment.

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Public Record
Your Form 1 and anything attached to it is a
public record.Your Social Security Number is not
required and you should redact it from any
documents you file. If you are an active or former
officer or employee listed in Section
119.071(4)(d), F.S., whose home address is exempt
from disclosure, the Commission is required to
maintain the confidentiality of your home address
if you submit a written request for confidentiality.
 The Commission encourages persons listed in
Section 119.071(4)(d), F.S., to provide an address
other than their home address.

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Government is a trust, and the officers of
the government are trustees; and both the
trust and the trustees are created for the
benefit of the people.
Henry Clay
Madam, I may be President of the United
States, but my private life is nobody’s damn
business.
Chester A. Arthur
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Penalties



Your Form 1 is due July 1. If it is not filed or
postmarked by September 3, an automatic fine of
$25 for each day late will be imposed, up to a
maximum penalty of $1,500.
You can appeal within 30 days for unusual
circumstances.
Also, failure to make any required disclosure may
be punished by removal, or suspension from office
or employment, demotion, reduction in salary,
reprimand, or a civil penalty not exceeding $10,000.
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Appeal of Automatic Fine
Reasons listed on the Commission form:
 Illness or injury (attach statement from attending
physician).
 Lack of notification – Failure to receive notice
(provide documentation supporting that you never
received certified mail delinquency notice).
 Previously filed financial disclosure (provide copy of
certified mail receipt and/or copy of completed form
which had been previously filed, along with a sworn
notarized statement).
 Left public position prior to December 31, 2012
(provide confirmation from agency).
 Other unusual circumstance (uncommon, rare, or
sudden occurrence that prevented timely filing).
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2 ways to report
The law gives you the option of reporting
based on:
o Comparative thresholds - usually, based on
percentage values, or
o Dollar value thresholds - based on absolute
dollar values.
 On your Form 1, you must check which
method you used.You must use the
threshold you choose in every section of
your Form 1. (No mixing and matching.)

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Primary sources of income (A)

List the name, address, and principal business activity of each
source of your income which exceeded:
◦ 5% (Comparative threshold)
◦ $2,500 (Dollar value threshold)



of gross income received by you in your own name or by any other
person for your use or benefit.
You do not have to disclose the amount of income received.
You do not have to list your public salary from serving in the
position which requires you to file the form, but this amount
should be included when calculating your gross income for the
disclosure period.
You do not need to disclose the income of your spouse. But, if you
and your spouse receive joint income from property you own
jointly (such as interest or dividends from a bank account or
stocks), you should include all of that income when calculating your
gross income and disclose the source of that income if it exceeded
the threshold.
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Primary sources of income (A)


"Gross income" means the same as it does
for federal income tax purposes, even if the
income is not actually taxable, such as
interest on tax-free bonds.
Examples include: compensation for services,
income from business, gains from property
dealings, interest, rents, dividends, pensions,
IRA distributions, social security, distributive
share of partnership gross income, and
alimony, but not child support.
17
Primary sources of income (A)
Examples:
 You were employed by a company that manufactures
computers and received more than
◦ 5% (Comparative threshold)
◦ $2,500 (Dollar value threshold)
List the name of the company, its address, and its principal
business activity (computer manufacturing).
 You were a partner in a law firm and your distributive share
of partnership gross income exceeded
◦ 5% (Comparative threshold)
◦ $2,500 (Dollar value threshold)
List the name of the firm, its address, and its principal
business activity (practice of law).
18
Primary sources of income (A)
Examples:
 You were the sole proprietor of a retail gift business and
your gross income from the business exceeded
◦ 5% (Comparative threshold)
◦ $2,500 (Dollar value threshold)
List the name of the business, its address, and its principal
business activity (retail gift sales).
 You received income from investments in stocks and bonds.
Rather than aggregating all of your investment income, list
only each individual company from which you derived more
than
◦ 5% (Comparative threshold)
◦ $2,500 (Dollar value threshold)
19
Primary sources of income (A)
More examples:
 More than
◦ 5% (Comparative threshold)
◦ $2,500 (Dollar value threshold)
of your gross income was gain from the sale of property (not just the
selling price). List as a source of income the name of the purchaser, the
purchaser’s address, and the purchaser’s principal business activity.
◦ If the purchaser’s identity is unknown, such as where securities listed on
an exchange are sold through a brokerage firm, the source of income
should be listed simply as "sale of (name of company) stock," for
example.
 More than
◦ 5% (Comparative threshold)
◦ $2,500 (Dollar value threshold)
of your gross income was in the form of interest from one particular
financial institution (aggregating interest from all CD’s, accounts, etc., at
that institution). List the name of the institution, its address, and its
principal business activity.
20
Secondary sources of income (B)
Disclose major customers, clients, and
other sources of income to businesses in
which you own an interest.
 Do not for report income from second
jobs in this section. That income is
reported under Primary Sources of
Income.

21
Secondary sources of income (B)

You will not have anything to report unless, during the year,
you:
◦ Owned (either directly or indirectly in the form of an equitable
or beneficial interest) during the disclosure period more than 5%
of the total assets or capital stock of a business entity (a
corporation, partnership, LLC, limited partnership,
proprietorship, joint venture, trust, firm, etc., doing business in
Florida); and
(Comparative threshold)
◦ Received more than 10% of your gross income during the
disclosure period from that business entity; and
◦ Received more than $1,500 in gross income from that business
entity.
(Dollar value threshold)
◦ Received more than $5,000 of your gross income during the
disclosure period from that business entity.
22
Secondary sources of income (B)

If you exceeded the thresholds, then for that business entity
you must list every source of income to the business entity
which exceeded 10% of the business entity’s gross income
(computed on the basis of the business entity's most recently
completed fiscal year), the source’s address, and the source's
principal business activity.
23
Secondary sources of income (B)
Examples:
 You are the sole proprietor of a dry cleaning business, from which
you received more than
◦ 10% of your gross income, an amount more than $1,500
(Comparative threshold)
◦ $5,000 (Dollar value threshold)
If only one customer, a uniform rental company, provided more
than 10% of your dry cleaning business, you must list the name of
the uniform rental company, its address, and its principal business
activity (uniform rentals).
 You are a 20% partner in a partnership that owns a shopping mall
and your partnership income exceeded the thresholds.You must
list each tenant of the mall that provided more than 10% of the
partnership's gross income, the tenant's address and principal
business activity.
24
Real property (C)
(Both thresholds)
List the location or description of all real
property in Florida in which you owned
directly or indirectly at any time during the
previous tax year in excess of 5% of the
property’s value.
 Do not list your residences and vacation
homes.
 Indirect ownership includes:

◦ (1) you are a beneficiary of a trust that owns the
property,
◦ (2) you are more than a 5% partner in a
partnership or stockholder in a corporation that
owns the property.
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Real property (C)
(Both thresholds)
Value of the property may be based on the most
recent assessed value for tax purposes, in the
absence of a more current appraisal.
 The location or description of the property
should be sufficient to enable anyone who looks
at the form to identify the property.

◦ A legal description of the property may be used, but
is not required.
◦ Simple descriptions, such as "duplex, 115 Terrace
Avenue, Tallahassee" or "40 acres located at the
intersection of Hwy. 60 and I-95, Lake County" are
okay.
26
Intangible personal property (D)





Give a general description of intangible personal property that, at
any time during the year, was worth more than
◦ 10% of your total assets (Comparative threshold)
◦ $10,000 (Dollar value threshold)
State the business entity to which the property related.
Intangible personal property includes things like money, stocks,
bonds, certificates of deposit, interests in partnerships, beneficial
interests in a trust, promissory notes owed to you, accounts
receivable by you, assets held in IRA’s, DROP accounts, Florida
Prepaid College Plan accounts, and bank accounts.
Things like automobiles, houses, jewelry, and paintings are not
intangible property.
Intangibles relating to the same business entity may be aggregated;
for example, certificates of deposit and savings accounts with the
same bank.
Property owned as tenants by the entirety or as joint tenants with
right of survivorship should be valued at 100%.
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Intangible personal property (D)
(Comparative threshold only)



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

Calculations: In order to decide whether the intangible property
exceeds 10% of your total assets, you need to total the value of all
of your assets (including real property, intangible property, and
tangible personal property such as automobiles, jewelry, furniture,
etc.).
Do not subtract any liabilities (debts) that may relate to the
property—add only the fair market value of the property.
Multiply the total figure by 10% to arrive at the disclosure
threshold.
List only the intangibles that exceed this threshold amount.
Property that is only jointly owned property should be valued
according to the percentage of your joint ownership. Property
owned as tenants by the entirety or as joint tenants with right of
survivorship should be valued at 100%.
Neither your calculations nor the value of the property should be
disclosed on the form.
28
Intangible personal property (D)
(Comparative threshold only)
Example:
 You own 50% of the stock of a small corporation that is
worth $100,000, the estimated fair market value of your
home and other property (bank accounts, automobile,
furniture, etc.) is $200,000. As your total assets are worth
$250,000, you must disclose intangibles worth over $25,000.
Since the value of the stock exceeds this threshold, you
should list "stock" and the name of the corporation. If your
accounts with a particular bank exceed $25,000, you should
list "bank accounts" and bank’s name.
29
Liabilities (E)





List the name and address of each creditor to whom you owed:
any amount that, at any time during the year, exceeded your net
worth. (Comparative threshold)
more than $10,000, at any time during the year. (Dollar value
threshold)
Do not list the amount of any indebtedness or your net worth.
You do not have to disclose any of the following: credit card and
retail installment accounts, taxes owed (unless reduced to a
judgment), indebtedness on a life insurance policy owed to the
company of issuance, or contingent liabilities.
◦ A “contingent liability” is one that will become an actual liability only
when one or more future events occur or fail to occur, such as where
you are liable only as a guarantor, surety, or endorser on a promissory
note. If you are a “co-maker” and have signed as being jointly liable or
jointly and severally liable, then this is not a contingent liability; if the
total amount of the debt exceeds $10,000 it should be reported.
30
Liabilities (E)
(Comparative threshold only)
Calculations: In order to decide whether the debt exceeds
your net worth, you will need to total all of your liabilities
(including promissory notes, mortgages, credit card debts,
judgments against you, etc.). Subtract this amount from the
value of all your assets as calculated in Part D. This is your
"net worth."
 You must list on the form each creditor to whom your debt
exceeded this amount unless it is one of the types of
indebtedness listed previously (credit card and retail
installment accounts, etc.).
 Joint liabilities with others for which you are jointly and
severally liable (you may be liable for either your part or the
whole), should be included in your calculations at 100% of
the amount owed.

31
Liabilities (E)
(Comparative threshold only)
Example:
 You owe $15,000 to a bank for student loans, $5,000 for
credit card debts, and $60,000 (jointly with your spouse) to a
savings and loan for a home mortgage. Your home (owned by
you and your spouse) is worth $80,000 and your other
property is worth $20,000. Since your net worth is $20,000
($100,000 minus $80,000), you must report only the name
and address of the savings and loan.
32
Interests in specified businesses (F)
(Both thresholds)

The types of businesses covered in this disclosure
include: state and federally chartered banks; state and
federal savings and loan associations; cemetery
companies; insurance companies; mortgage companies;
credit unions; small loan companies; alcoholic beverage
licensees; pari-mutuel wagering companies, utility
companies, entities controlled by the Public Service
Commission; and entities granted a franchise to operate
by either a city or a county government.
33
Interests in specified businesses (F)
(Both thresholds)

You must disclose the fact that you owned during the year an
interest in, or held any of certain positions with, those types
of businesses.
◦ You must make this disclosure if you own or owned (either
directly or indirectly in the form of an equitable or beneficial
interest) at any time during the disclosure period more than 5%
of the total assets or capital stock of one of those types of
businesses.
◦ You must make this disclosure for each of these types of
businesses for which you are, or were at any time during the
disclosure period, an officer, director, partner, proprietor, or
agent (other than a resident agent solely for service of process).

You should list the name of the business, its address and
principal business activity, and the position held with the
business (if any). If you own(ed) more than a 5% interest in
the business, you must indicate that fact and describe the
nature of your interest.
34
Contrariwise . . . if it was, it might be; and if
it were so, it would be: but as it isn’t, it ain’t.
That’s logic.
Tweedledee
35
Form 1F Final Statement of Financial
Interests



You leave the public position for which you
were required to file a statement of financial
interests (Form 1).
Within 60 days of leaving the position, you
must file a final statement covering the
period from January 1 to your last day in the
position,
unless you take another position within that
60 day period which requires filing either a
statement of financial interests or full and
public disclosure covering that disclosure
period.
36
Form 1X Amendment to Form 1
Statement of Financial Interests
You may amend your previously filed
Form 1s to add to or modify the
information originally reported at any
time.
 If the amendment addresses the subject
of a complaint filed against you, the
Commission will consider the timing of
the amendment as a mitigating factor

37
Florida Commission on Ethics
(850) 488-7864
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County Disclosure Coordinator
List
38
Open meetings
The law may apply to advisory boards even when
they only make non-binding recommendations
 Staff meetings are usually not covered
 Staff committees may be covered if they are
deemed to be part of the “decision making
process” rather than performing traditional staff
roles of gathering and organizing information
 For example, a committee composed of staff
could be given the authority to screen and reject
applicants from further consideration

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